SEVEN families have bought their first homes, thanks to a county council-backed mortgage scheme.

The news came after Leicestershire County Council and Lloyds TSBs scheme to help first-time buyers approved loans totalling 5.9 million pounds in its first two months.

Leicestershire County Council is lending 10 million pounds to enable Lloyds TSB to provide affordable mortgages, through its Local Lend a Hand scheme.

The full 10 million pounds will enable more than 400 first time buyers enter the housing market. It should result in a further 2,000 house moves, by freeing up houses for rent as more people buy their own homes.

Since the scheme was launched in mid-September, it has:

Approved 53 mortgage applications, worth 5.9 million pounds

Completed sales to seven families and couples.

Council leader Nick Rushton said: "Thanks to our support, people are getting a chance to buy their own homes, transforming their lives and boosting the local economy.

"It's a win-win we help to get people on the property ladder and we get the money back, with interest."

Stephen Noakes, mortgage director at Lloyds TSB, said: "With the launch of Lend a Hand in Leicestershire, were making the housing market more accessible to more people.

"Helping people to buy their first home is crucial in achieving and maintaining a sustainable housing market."

How the scheme works:

The council lends money from its reserves to the bank

The money allows the bank to offer mortgages of up to £142,500, reducing the size of deposit that first-time buyers have to find to just five per cent After five years, the bank repays the money, plus interest, to the council

The scheme has already proved a success in Blaby, where the district council has already invested.

The county council's scheme would expand it to the rest of Leicestershire, excluding the city of Leicester.

For further details, or to apply for a mortgage, see staff at any Lloyds TSB branch in Leicestershire.